Wednesday, November 19, 2008

Look Out Below

Here is a long term look at how bad this market is for investors.
Nothing is going up and the volatility is high.
Banks are making a run to 0.
The only potential silver lining is the catastrophic ratio between down/up volume, but I wouldn't wanna try and call this capitulation ahead of time.

All in all, the market is clearly unable to catch a real bid, and as we begin to see 12/14 year lows get breached, people will get increasingly fed up. I suspect tomorrow's open will be rough for the longs, but I'm keeping my eyes open for a "WHY THE FUCK ARE WE GOING UP?" rally.

P.S. Am I the only one happy to see the efficient market theory consume Berkshire Hathaway? Somebody buy Warren a Cherry Coke once you make a killing short AXP.

Buy Energy & Sell Finance

A theme from the first half of 2008 is reemerging, and it warrants notice.
How far can the spread between DIG and UYG get?

Tuesday, November 18, 2008

4 Stocks To Watch

Some unusual survivors of the recent lows.
For the Salmon Investor (the ones who are always swimming up stream), the high volume accumulation makes this an interesting long term buy.
Massive short position and recent low make this high risk, but there may be a worthy squeeze.
Diminishing volume suggests a shorting opportunity for this teen retailer.
Most shocking, a Chinese Dairy company at 2008 highs?!? Increasing volume no less...